Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following is an example of the Confirmation Bias You use a DCF valuation you learned in FIN 3002 to value MGM Grand

image text in transcribed
Which of the following is an example of the Confirmation Bias You use a DCF valuation you learned in FIN 3002 to value MGM Grand stock and find it is a buy. You buy it. The stock then quickly goes up 10. you believe you are a genius and can now outperform the market and produce "alpha" by using your DCF model You are thinking of buying a car and believe that Toyota's are reliable cars, so you Google "Toyota most reliable car awesome! You find pages upon pages of positive Toyota reviews about reliability of cars up to 300.000 miles and above and decide to buy a Toyota with the new information in hand One belleves that a college course is not a useful course so he or she does not watch the lectures or study, and thus warns nothing in the course, which covers that the counte was useless One selects a church based on the political or theological beliefs of the church which match one's own, and then becomes more entenched in these beliefs as they are remorced Bcorrect All of the above are examples of the "Confirmation Bas

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ethics Theory and Contemporary Issues

Authors: Barbara MacKinnon, Andrew Fiala

8th edition

9781305162846, 1285196759, 1305162846, 978-1285196756

More Books

Students also viewed these Finance questions

Question

How flying airoplane?

Answered: 1 week ago

Question

In bargaining, does it really matter who makes the first offer?

Answered: 1 week ago